Affiliate Marketing in a post-everything World
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This document discusses the current state and future of affiliate marketing. It notes that affiliate marketing is still largely a manual process but is becoming more programmatic. While technology and automation are growing, human relationships remain important. The future may see a more integrated affiliate program across channels with tools like a single affiliate manager interface. Affiliates and advertisers could benefit through opportunities like advertisers bidding on unsold affiliate inventory. The challenges of new technologies like ad blocking and multiple devices are also discussed. Overall, the affiliate marketing channel continues to embrace change and new technologies while maintaining the importance of relationships.
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Affiliate Marketing in a post-everything World
- 1. © 2015 AFFILIATE MARKETING IN A POST-EVERYTHING WORLD.
- 2. © 2015 YOUR SPEAKERS. » Seán Mahon » Affiliate Team Leader, Equator » Emma Burnett Blair » Display Team Leader, Equator » @Equator_Aff
- 3. © 2015 TOP 10 UK INDEPENDENT DIGITAL AGENCY ON PERFORMANCE 16 YEARS OLD AND PASSIONATE ABOUT INNOVATION 140+ IN-HOUSE DIGITAL EXPERTS INSPIRATIONAL SHORTLISTED IN SUNDAY TIMES BEST COMPANIES AWARD GLA & NYC
- 4. © 2016 ONCE UPON A TIME...
- 5. © 2016 PPC SEO Affiliates Display
- 6. © 2016
- 8. © 2016
- 9. © 2016 A connected brand story across screens
- 10. © 2016
- 11. © 2016 WHERE DO WE GO FROM HERE?
- 12. © 2016 AFFILIATES GO PROGRAMMATIC
- 13. © 2016 “…affiliate marketing is very much a manual affair. CPAs are negotiated by phone and email, IOs are signed and scanned. Many fundamental processes are entirely manual… Affiliates are scattered across multiple networks and technology solutions making it trying, or in some cases impossible, for an advertiser to work with every relevant affiliate.” Elliot Myers, Maxus Global
- 14. © 2016 PROGRAMMATIC: THE AFFILIATE VIEW » Robots? » Real time bidding on key partner sites? » …Or are we just saying programmatic Display on a CPA basis??? » Which you’ll probably pay for on a PI cookie » …Which we already kind of do
- 15. © 2016 PROGRAMMATIC: THE DISPLAY VIEW Bidding on a display advertising inventory source in real time, for the opportunity to show one specific ad, to one consumer, in one specific context. Individuals AI & super smart targeting RTB Scale Maximum ROI
- 16. © 2016
- 17. © 2016
- 18. © 2016 “You can’t fulfil your potential without communication in affiliate marketing. Technology and automation are still underpinned by relationships and that human element is vital” Anjulie Truong, Affiliate Window
- 19. © 2016 IN TODAY’S WORLD… » Technology is doing more of the heavy lifting » But relationships are still key » It’s about the individual, not the masses
- 21. © 2016 A ONE STOP AFFILIATE SHOP. Affiliate manager One interface Commission increases Tenancies Newsletter exposure Multiple activities
- 22. © 2016 A WIN WIN WHEN IT COMES TO TENANCIES. Unsold tenancie s (Affilia te) (Advertiser ) Unsold affiliat e inventor y Advertiser bids for and wins inventory Affiliate sells previousl y unsold inventory Advertiser gets quality inventory at a reduced price (SSP ) (Ad Exchange) (DSP)
- 23. © 2016 - Sean - 31 Years Old - Spends £££ on shoes - Roughly £150 per month - Uses Cashback sites - Loyal to Nike - Will try other brands
- 24. © 2016 AND AFTER THAT…? NOW Programmatic TV Programmatic OOH AI in searchChallenges from ad blocking Mobile & multiple devices
- 25. © 2016 WHERE ARE WE HEADING? » Erosion of channels? » Determined by payment model » Relationships & CPA » Channel has always embraced change and new technologies
- 26. © 2016 I D E A S F O R A C O N N E C T E D W O R L D .
- 27. © 2016 THANKS FOR YOUR TIME! » We’d love to hear from you! » sean.mahon@eqtr.com » emma.blair@eqtr.com » @Equator_Aff
Editor's Notes
- Emma Previously worked on affiliate accounts at Equator before moving onto leading the display team
- This is a nice example of how the lines between channels are blurring and how they need to work together. For a long time, measuring tangible results from TV campaigns has been difficult and new trends in consumer behaviour such as second screening have raised new challenges. But now there’s a real opportunity for digital to work in conjunction with TV and capitalise on awareness and interest generated from those campaigns, bringing it online and translating it into an actual conversion. The Second Screen is distracting from the commercial break, as the majority of TV viewers reach to their mobile devices when the ads start airing. With synced TV and digitals ads, Nissan won back the audience’s attention, telling a connected brand story across screens and significantly increasing brand awareness. Golden Charter’s TV campaign faced these challenges so and in a bid to win back users attention, we ran display ads that synced with their TV ads and while we knew that users wouldn’t click through a banner and convert straightaway, but those who did click onto site could be recaptured at another time by another channel after various retargeting activities across display, affiliates, PPC and email. It’s nothing ground breaking or particularly difficult and I’m sure many people here have done the same but it is effective and nice example of how channels really need to be supporting each other
- Cross over between channels – affiliates doing display, display doing social etcetc Reach and frequency struggles
- Sean gives his view on this statement from affiliate point of view then Emma hops in to reference display? Display But this statement isn’t wholly irrelevant for display The rise of programmatic and the automated way in which we now plan, buy and sell display ads has without a doubt reduced the amount of manual tasks we need to complete and therefore the amount of man hours required, but it’s not removed them altogether In the case of display, CPMs/ CPCs still have to be discussed, negotiated and agreed upon with the programmatic provider prior to the campaign going live (if partnering with a provider rather than DBM or in-house trading desk) CPAs that the campaign is working towards still has to be set IOs still have to be signed, scanned and returned The difference is that in the past display advertisers had to do this multiple times e.g. if you wanted to place ads on eBay, MSN, The Guardian etc etc, you’d have to do that process for every publishers, whereas programmatic allows you to do this process once That being said, you may have more than one display strategy on your plan. Depending on the size of client, their objective and their budget etc, you may find that you want to supplement the programmatic activity with some social ads, in which case, the process will have to be repeated for that.
- Definition by Rocket Fuel Lots of jargon/ different definitions which can make understanding programmatic complicated It’s important to note that it’s not simply about automation, it goes far beyond that Individuals Arguably, the most revolutionary aspect of programmatic is that advertisers buy media individually, not grouped by the thousands or millions. Contrast this approach with traditional segment-based buying, where advertisers can only serve one generic ad to a large and potentially diverse segment of consumers who consume the ad across a huge variety of contexts. Programmatic allows us to serve one specific ad to one single consumer in one single context. Never as the good old marketing phrase “the right users, the right time, the right message, the right place” been so true AI/ targeting Programmatic can utilise thousands of data points about each individual consumer. Clickstream data, demographic data, behavioural data, and many other first-party and third-party data points are all considered by complex algorithms to draw a fuller picture of the consumer who will view the ad. This means that the algorithms can decide with great precision if this consumer in this context is worth serving an ad to meaning that advertisers don’t waste money on wasted ads and users get messages that are relevant to them. AI allows precision RTB The process of buying digital inventory from multiple publishers on an impression by impression basis Let’s think of this like an auction – programmatic algorithms, by analysing the data we’ve spoken about, allow us to identify the most value individuals to us. Once we identify these users, we can bid on them and the advertiser who places the highest bid wins the impressions. This all happens within a matter of milliseconds. Scale Programmatic buying can reach the “ideal customer” on many more properties than just a handful of sites. Due to its real-time connection with many large inventory sources, programmatic buying can consider vastly more websites and digital properties than any manual media planner could. And because we have so much data on who our most valuable prospects are, we can find these users online Programmatic can aggregate high-performing audiences at mass scale – targeting not just a handful of consumers at a high price, but a huge pool of them with accuracy and at a low cost ROI Programmatic is smart, one of the smartest tools we have Consequently, it reduces ad wastage and make sure our investment goes towards reaching users who are valuable to us This improved accuracy means better results that are measurable in real time Technology based approached reduces the requirement for time intensive, manual tasks the advertisers need to do All these things make programmatic one of the most cost-effective strategies available
- In the past, there was a lot of time spend manually trawling through lots of data to identify audiences who we hoped would be the right fit – it was time intensive and low in accuracy. But now…
- “In the past, brands would target the masses. Now they can target Wally/ Waldo!” It’s all about identifying and targeting individual users with relevant messaging Never before has the phrase ‘right user, right time, right message’ been so relevant
- SM – fear that we’ll lose relationships through automation Display There is no doubt that the rise in tech has been hugely beneficial in terms of reducing the amount of time humans have to spend setting up and managing campaigns but robots and machines have not replaced humans in every sense Like affiliates, relationships are still important Negotiating deals Planning campaign strategies Campaign management and optimisations Fewer relatnioships but stronger ones
- ADD: Programmatic allows us to be hugely granular and consequently, more relevant
- With programmatic display, we have one piece of tech, one portal, that pools inventory from multiple different sources and allows us to manage it all from the one place. For example, we can run ads on multiple sites, to multiple users, with multiple types of creative, messages, propositions – all from one place. Commission increases Automatic as in the changing/ managing commission increases could be done from the 1 interface rather than approaching and negotiating with individual affiliates Tenancies Programmatic tenancies whereby 1 tenancy agreement is signed with a programmatic tenancy provider (like Rocket Fuel) but rather than tenancy appearing to all of an audience, e.g. a targeting segment on Quidco, the tenancy appears across multiple cashback sites according to the user
- Heavily based on display programmatic model of SSPs, ad exchanges and DSPs Quidco unable to sell all tenancy inventory so put unsold inventory into a big ‘pot’ (ad exchange) Advertiser can choose to buy a tenancy directly from Quidco, perhaps if they are looking to buy a particular or tailored product, but if they are simply looking to target an audience, they could select and purchase this audience from the ‘pot’, bidding an amount that they think said audience is worth. Consequently, Quidco sells unsold inventory, albeit at a slightly lower cost, while the advertiser could get a targeted tenancy at a lower price
- There are still some fundamental challenges within the modern day programmatic environment We’ve got to be careful we don’t run before we can walk Challenges with mobile, cross-device, attribution, ad blocking, fraud, creative sophistication and optimisation and fundamentally, tech (especially when it comes to affiliates) Ambiguity surrounding the term programmatic here – for TV and OOH it refers more to the data driven and automation aspects rather than targeting individual users AI in search e.g. RankBrain Programmatic OOH – that cool example about leaflet drops Mobile and multiple devices – we haven’t mastered mobile programmatic; still big ways to go in terms of cross-device and attribution
- CPAs more of a focus in display Display providers offering cost per download Channels are no longer black and white It’s about how all the channels work together to work to an end goal (attribution!)